CRISPR Therapeutics shares fell by -2.6% during the day's afternoon session, and are now trading at a price of $83.99. Is it time to buy the dip? To better answer that question, it's essential to check if the market is valuing the company's shares fairly in terms of its earnings and equity levels.
CRISPR Therapeutics's Valuation Is in Line With Its Sector Averages:
CRISPR Therapeutics AG, a gene editing company, focuses on developing gene-based medicines for serious diseases using its Clustered Regularly Interspaced Short Palindromic Repeats (CRISPR)/CRISPR-associated protein 9 (Cas9) platform. The company belongs to the Health Care sector, which has an average price to earnings (P/E) ratio of 30.21 and an average price to book (P/B) ratio of 4.08. In contrast, CRISPR Therapeutics has a trailing 12 month P/E ratio of -43.3 and a P/B ratio of 3.57.
When we divideCRISPR Therapeutics's P/E ratio by its expected five-year EPS growth rate, we obtain a PEG ratio of 0.08, which indicates that the market is undervaluing the company's projected growth (a PEG ratio of 1 indicates a fairly valued company). Your analysis of the stock shouldn't end here. Rather, a good PEG ratio should alert you that it may be worthwhile to take a closer look at the stock.
An Excellent Current Ratio and Slight Revenue Growth:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (k) | $3,124 | $289,590 | $719 | $914,963 | $1,198 | $170,006 |
| Operating Margins | -5088% | 16% | -49296% | 41% | -56190% | -249% |
| Net Margins | -5281% | 23% | -48521% | 41% | -54272% | -208% |
| Net Income (k) | -$164,981 | $66,858 | -$348,865 | $377,661 | -$650,175 | -$353,532 |
| Net Interest Expense (k) | -$5,485 | $20,566 | $6,379 | $6,003 | $22,661 | $63,309 |
| Depreciation & Amort. (k) | $3,519 | $4,725 | $9,184 | $17,953 | $24,172 | $20,783 |
| Diluted Shares (k) | 51,688 | 60,234 | 71,282 | 80,393 | 77,747 | 79,414 |
| Earnings Per Share | -$3.44 | $1.17 | -$5.29 | $4.7 | -$8.36 | -$4.46 |
| Avg. Price | $46.43 | $44.36 | $79.55 | $121.04 | $61.24 | $83.99 |
| P/E Ratio | -13.5 | 36.07 | -15.04 | 24.35 | -7.33 | -18.83 |
| CAPEX (k) | $2,773 | $6,684 | $18,358 | $81,705 | $37,188 | $14,923 |
| Current Ratio | 16.81 | 17.29 | 18.21 | 20.17 | 15.3 | 15.83 |
